Loading Content...
Zip Code 12828: Rising Home Values and Stable Ownership in Fort Edward, NY
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 12828, encompassing Fort Edward in New York, presents an intriguing case study of housing market dynamics. This area has experienced notable fluctuations in homeownership rates and property values over the past decade, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 12828 has shown variability, ranging from a low of 68% in 2016 and 2018 to a high of 77% in 2021. This fluctuation coincides with significant changes in average home prices. In 2013, the average home price was $150,015, which steadily increased to $231,354 by 2022, representing a substantial 54.2% growth over nine years. The relationship between homeownership rates and average home prices doesn't always follow a linear pattern. For instance, despite rising home prices, the area saw an increase in homeownership from 68% in 2018 to 74% in 2022, suggesting other factors influencing buying decisions.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 12828. The period of historically low interest rates from 2013 to 2021, ranging from 0.08% to 0.4%, coincided with a general upward trend in homeownership. This aligns with the principle that lower interest rates make mortgages more affordable, encouraging home buying. However, the sharp rise in interest rates to 1.68% in 2022 didn't immediately impact homeownership, which remained at 74%, indicating a potential lag in market response or other counterbalancing factors.
Renter percentages in zip code 12828 have inversely mirrored homeownership rates, ranging from 23% to 32% between 2013 and 2022. Average rent prices have shown less consistent growth compared to home prices. In 2013, the average rent was $979, which fluctuated over the years, reaching $978 in 2022. Notably, there was a significant spike to $1,202 in 2021, coinciding with the lowest renter percentage of 23%. This suggests a potential relationship between higher rents and decreased renting, possibly pushing more residents towards homeownership.
In 2023 and 2024, zip code 12828 continued to see growth in average home prices, reaching $240,300 in 2023 and further increasing to $247,666 in 2024. This represents a 7.1% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly, hitting 5.02% in 2023 and 5.33% in 2024, marking the highest rates in over a decade. These high interest rates could potentially impact future homeownership rates and property values in the area.
Looking ahead, predictive models suggest a continued upward trend in average home prices for zip code 12828 over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are expected to stabilize or show modest increases, influenced by the overall housing market conditions and local economic factors.
In summary, zip code 12828 has demonstrated resilience in its housing market, with generally increasing homeownership rates despite rising home prices. The area has seen substantial appreciation in property values, particularly from 2013 to 2024. The interplay between federal interest rates, homeownership, and rental markets has been evident, with low interest rates generally supporting homeownership. The recent spike in interest rates and continued home price appreciation present new challenges and opportunities for this housing market in the coming years.
